Slide 1: Q4 and full year 2024
Q4 and full year 2024 January 30, 2025 Helena Hedblom, President and CEO Håkan Folin, CFO
Slide 2: Highlights 2024
Highlights 2024 • Record highs for orders received and revenues – Acquisitions – Strong mining, stable infrastructure and weak construction • Operating profit lower, adj. EBIT margin 19.8% (21.7) – Weak construction, mainly impacting Attachments – Strong demand for strategic growth areas 2024 – Effi
Slide 3: Innovation leadership: Automation
Innovation leadership: Automation Market leader in mixed-fleet automation >3 450 driverless machines +21% vs 2023 Great potential to connect an even larger fleet: Epiroc and/or other Autonomous load/haul OEM Epiroc equipment (used mainly underground) that is Mixed-fleet autonomous load/haul fully au
Slide 4: Innovation leadership: Digitalization
Innovation leadership: Digitalization Digital Solutions geared to scale with increasing customer demand Strong orders for Digital Solutions +30% vs. 2023 CONNECT AUTOMATE PROTECT PLAN OPERATE SUSTAIN Current revenue Large Medium Small Scalability Projects Software & projects Software & Projects 4 FY
Slide 5: Innovation leadership: Electrification
Innovation leadership: Electrification From first movers to fast followers Electrification share of Group revenues: 4.2% BEV – BEV utilization more than doubled in 2024 – 39 mining sites have ordered BEV equipment – 28% of sites with BEVs in operations have ordered more machines Product launches to
Slide 6: Highlights Q4 2024
Highlights Q4 2024 • Strong mining demand – MSEK 820 (1 200) in large orders, incl. MSEK 250+ within digital solutions – Good demand for Tools • Mixed infrastructure – Solid tunneling and civil engineering – Weak construction demand, mainly impacting attachments Q4 2024 6
Slide 7: Group orders received: Strong mining
Group orders received: Strong mining • Orders received +12% • Strong mining • +5% organic growth • MSEK 16 182 (14 388) • Solid infrastructure and weak • +7% acquisition growth construction Orders received Organic growth Orders received bridge 2% organic 17 500 18 000 10 9 17 000 +12% 16 349 16 182
Slide 8: Aftermarket
Aftermarket • High mining activity level with a particularly good demand for Digital Solutions and Tools • Weak construction, impacting mainly Attachments Revenue split Recurring aftermarket revenues 14 000 12 000 10 960 10 439 10 054 10 506 10 909 22% (19) 10 000 9 738 9 612 9 453 T&A 8 965 37% (38
Slide 9: Operational excellence
Operational excellence • Efficiency measures implemented according to plan – Sequential reduction of workforce by around -135* – Full year reduction of workforce by -1 135* – Further measures ongoing • Sequential reduction of inventory by BSEK 1 – More efficient in final modifications, leading to mo
Slide 10: Sustainability: People
Sustainability: People • Improved safety – Focus on a strong safety culture – Total recordable injury frequency rate decreased to 4.3 (5.1) • Employees up 4% to 18 874 (18 211) – Acquisitions • Increased number and proportion of women – Employees 19.8% (19.0) – Managers 24.4% (23.4) Q4 2024 10
Slide 11: Sustainability: Planet
Sustainability: Planet • CO2e emissions from operations* -9% to 17 153 (18 879) tonnes – Higher share of renewable energy purchased and installation of solar panels • CO2e emissions from transport* +8% to 101 010 (93 258) tonnes • TIME Magazine: World’s Best Companies in Sustainable Growth 2025 * Co
Slide 12: Group revenues and EBIT
Group revenues and EBIT • Revenues increased 11% to MSEK 17 251, +4% organic • Operating profit MSEK 3 427 (3 349), incl. IAC of MSEK 22 (120) – Earn-out of acquisition of MSEK -15 and change in provision for LTIP of MSEK 37 (-2) • Adj. EBIT MSEK 3 405 (3 229), 19.7% (20.7) – Dilution from acquisiti
Slide 13: Group EBIT profit bridge
Group EBIT profit bridge Adj. Margin: Margin: margin: 21.5% 19.9% 19.7% 3 600 +2% +57 +0.2 pp -115 -1.8 pp +136 3 427 -22 3 405 3 400 +-0 0pp 3 349 -120 Adj. opening balance 3 200 -17 Structure incl. acq. +22 IAC 0 Q423 Organic Currency Structure/other Q424 IAC Adjusted operating profit Q4 2024 13
Slide 14: Equipment & Service orders received: Strong mining
Equipment & Service orders received: Strong mining • Orders received +5% • High mining activity • +5% organic growth • MSEK 12 180 (11 551) • Large orders MSEK 820 (1 200) • Digital solutions strong Orders received Organic growth Orders received bridge 1% organic 14 000 12 800 12 276 12 388 10 9 9 1
Slide 15: E&S revenues and EBIT
E&S revenues and EBIT • Revenues +6% organic to MSEK 13 311 (12 558) • Operating profit MSEK 3 121, incl. IAC of MSEK -15 (280) – Earn-out for the acquisition of RCT • Adj. EBIT MSEK 3 136 (2 931) and adj. EBIT margin 23.6% (23.3) Revenues and EBIT 14 000 13 311 60 12 510 12 558 12 516 11 729 11 875
Slide 16: E&S profit bridge
E&S profit bridge Adj. Margin: Margin: margin: 25.6% 23.4% 23.6% -3% 3 400 56 +0.3pp 3 300 126 -272 3 211 -0.4pp -2.1pp 3 200 3 121 3 136 15 3 100 3 000 -280 Adj. opening balance +23 Structure incl. acq. -15 IAC 200 100 0 Q423 Organic Currency Structure/other Q424 IAC Adjusted operating profit Q4 20
Slide 17: Tools & Attachments orders received: Mixed demand
Tools & Attachments orders received: Mixed demand • Orders received +39% • Construction remained weak • +3% organic growth – Acquisitions of Stanley • Good demand from mining • +35% acquisition growth Infrastructure and ACB+ customers • MSEK 3 938 (2 827) Orders received Organic growth Orders receiv
Slide 18: T&A revenues and EBIT
T&A revenues and EBIT • Revenues up 30% to MSEK 3 891, -1% organic • Operating profit MSEK 326 (243) – EBIT margin 8.4% (8.1), of which dilution from acquisitions -4.0 percentage points Revenues and EBIT 4 500 40 3 991 3 891 4 000 3 809 35 3 500 3 418 3 125 3 195 30 2 985 2 949 3 000 2 713 25 2 500
Slide 19: T&A profit bridge
T&A profit bridge Adj. Margin: Margin: margin: 8.1% 8.4% 8.4% +34% 350 326 326 +-0 300 118 250 243 +1.2pp -42 -1.0pp 7 200 +0.1pp 150 +158 Adj. opening balance -40 Structure incl. acq. +-0 IAC 100 50 0 Q423 Organic Currency Structure/other Q424 IAC Adjusted operating profit Q4 2024 19
Slide 20: Costs, net financials and tax
Costs, net financials and tax • Admin, marketing and R&D Administration, marketing and R&D expenses – Higher costs, but down for comparable units -2% – Increased investments in R&D 3 000 30 2 746 2 742 • Net financial items MSEK -301 (-435) 2 564 2 557 2 552 2 500 2 367 2 410 2 411 25 – Interest net
Slide 21: Operating cash flow
Operating cash flow Operating cash flow and cash conversion rate, % • Operating cash flow increased to record 4 500 130 120 high MSEK 3 956 (2 435) 4 000 3 956 110 • Strong invoicing of equipment 3 500 104 100 90 • Positive contribution from increased profit 3 000 83 90 88 80 2 500 67 2 435 70 1 889
Slide 22: Working capital
Working capital Year-on-year • Net working capital +12% Net working capital Working capital to MSEK 24 322 (21 736) – Acquisitions and currency 24 322 21 736 – 37.4% (35.2) of revenues 35 000 37.4 40 18 564 35.2 30 000 35 19 191 31.3 24 322 18 747 25 000 30 16 945 21 736 20 000 18 564 25 15 000 20 1
Slide 23: Working capital
Working capital Sequentially • Sequentially, the working capital has decreased Working capital – Inventory reduced by MSEK 1 011 0% – Receivables increased by MSEK 1 541 23 520 25 045 24 395 24 322 21 736 – Payables increased by MSEK 603 21 373 20 202 19 191 20 592 • Working capital in relation to s
Slide 24: Capital efficiency
Capital efficiency Net debt and Net debt/EBITDA Capital employed and ROCE • Net debt at MSEK 14 778 (7 824) 2.0 25 000 70 000 60 65 398 – Acquisitions 1.8 65 000 55 1.6 20 000 60 000 1.4 50 • Net debt/EBITDA 0.93 (0.49) 1.2 14 778 15 000 55 000 51 437 45 0.93 50 000 1.0 44 534 40 • ROCE 20.6% (27.0)
Slide 25: Dividend
Dividend* Dividend and payout ratio • Dividend of SEK 3.80 (3.80) 8 60 per share 56 7 53 55 • Two equal installments with 51 record dates May 12 and 6 49 49 50 5.50 October 14, 2025 5 45 • MSEK 4 592 (4 591) 3.80 3.80 4 3.00 40 3.40 3.00 3 35 2 30 2.50 1 25 0 20 2020 2021 2022 2023 2024* Payout rati
Slide 26: Summary
Summary • Strong mining (78% of orders) ‒ Organic growth for both equipment and service ‒ Large orders MSEK 820 • Mixed infrastructure (22% of orders) ‒ Solid tunneling and civil engineering ‒ Weak construction • Record-high revenues • Record high cash flow • Innovation leadership Q4 2024 26
Slide 27: Looking ahead
Looking ahead In the near term, we expect that the underlying mining demand, both for equipment and aftermarket, will remain at a high level, while the demand from construction customers is expected to remain weak Q4 2024 27
Slide 28: Q&A
Q&A ir@epiroc.com C Epiroc “4 2024
Slide 29: Appendix
Appendix Q4 2024 29
Slide 30: A 152-year old start-up company and a leading productivity and sustainability partner
A 152-year old start-up company and a leading productivity and sustainability partner Orders received Orders received Revenues in 62 213 ~150 countries 58 899 Europe 53 222 ~ 19 000 North America 13% employees 27% 45 648 39 400 39 492 EBIT margin* 36 579 19.5% Africa/ Asia / Australia Middle East 31
Slide 31: Our strategy is our investment case
Our strategy is our investment case We accelerate the productivity We have a high proportion We have a well-proven and sustainability transformation of recurring business business model in our industry Operational Operational Attractive niches Innovation Aftermarket Outperformance excellence excelle
Slide 32: Financial goals at a glance
Financial goals at a glance Goals Description Q4 2024 2024 2015-2024 Growth Annual revenue growth of 8% over a business cycle. 11% 5% 9% Industry-best operating margin, with strong 19.9% 19.5% 20.3% Profitability (EBIT) resilience over the cycle. Adj. 19.7% Adj. 19.8% Adj. 20.8% Improve capital effi
Slide 33: 2030 goals for people and planet
2030 goals for people and planet • No work-related injuries • Balanced workforce and double the number of women in operational roles • Have all employees and business partners comply with our Code of Conduct and Responsible Sales Assessment Process implemented • Halve CO2e emissions in operations* •
Slide 34: Debt information and maturity profile
Debt information and maturity profile Maturity profile 5 697 5 500 • Net debt/EBITDA: 0.93 • S&P rating: BBB+ Stable outlook • External financing: BSEK 18.2 3 500 4 000 • 94% long term financing 3 000 1 500 • 46% green or sustainability linked 2 000 • 4.5 years average tenor (long-term) 2 000 1 676
Slide 35: United. Inspired.
United. Inspired. Performance unites us, innovation inspires us, and commitment drives us to keep moving forward. Count on Epiroc to deliver the solutions you need to succeed today and the technology to lead tomorrow. epiroc.com
Slide 36: Disclaimer
Disclaimer - Some statements in this presentation, or in conclusion to it, are forward-looking and the actual outcome may be different. In addition to the factors explicitly commented upon, the actual outcome may be affected by other factors such as macroeconomic conditions, movements in foreign exc